‘K-Defense’, Targeting the European Market Beyond Poland

Domestic Defense Companies Participate in Poland Defense Exhibition
European Countries Express Interest in Korean Weapon Systems

The 31st 'MSPO 2023' International Defense Industry Exhibition opened on September 5 (local time) at the Targi Kielce exhibition center in Kielce, Poland.

On the 5th (local time), at the Hyundai Rotem booth of the MSPO Defense Industry Exhibition held in Kielce, Poland, Polish President Andrzej Duda is receiving an explanation about the multipurpose unmanned vehicle equipped with LIG Nex1's anti-drone system. (Photo by Korea Defense Industry Association)

Korea participated as the Lead Nation for the first time in six years since 2017. The MSPO exhibition is the third largest defense industry exhibition in Europe and has been held annually since its inauguration in 1993. At this exhibition, Korean companies showcased a large number of core weapons to win fierce contracts against defense powerhouses such as the United States, the United Kingdom, and Germany. At the opening ceremony, the Kukkiwon Taekwondo demonstration team performed breaking demonstrations, and the Navy's military band also gave a performance that attracted attention. Polish President Andrzej Duda visited the Korean pavilion one by one and expressed great interest in Korean weapon systems.

Major K-Defense companies, which hit the jackpot in Poland last year, signed a comprehensive Memorandum of Understanding (MOU) with the Polish state-owned defense company PGZ on maintenance and follow-up support. Taking this opportunity, they plan to strengthen marketing activities targeting Europe and NATO member countries with Poland as a hub, laying the groundwork for follow-up orders.

Weapon exports are not limited to a single contract and sale. According to the life cycle, the amount spent on hardware maintenance and software upgrades after the initial platform provision can reach up to eight times the initial platform cost over the next several decades to maintain and enhance functionality and combat power.

Last year, the domestic defense industry recorded large-scale exports to Poland, creating an opportunity to expand entry into the European market. Hyundai Rotem, Hanwha Defense, and KAI (Korea Aerospace Industries) secured export contracts worth a total of $12.4 billion for the K2 Black Panther tank, K9 self-propelled howitzer, FA-50, and others with Poland. While last year the Korean defense industry established a visible foothold for 'expanding entry into the European region,' this MSPO aims to solidify that foundation.

On this day, Polish President Andrzej Duda said in his opening remarks, "I am pleased that more than 700 defense companies from 35 countries are participating," and added, "Next year, we plan to spend 137 billion zlotys on defense. This amount exceeds 4% of our GDP."

Following this, Mariusz Błaszczak, Poland’s Minister of National Defense and Deputy Prime Minister, stated, "First, we are strengthening the defense of Poland and the free world," and added, "In 2022, we began large-scale cooperation with the Republic of Korea."

Minister Błaszczak’s remarks are interpreted as signaling a strong commitment to building powerful forces that not only defend Poland itself but also represent NATO member countries in protecting the free world through active defense cooperation and modernization of weapon systems.

On the first day of MSPO, visitors’ attention was focused on Korean weapon systems and defense companies participating as the Lead Nation. In the outdoor exhibition area, the K-2 tank, a symbol of Korean defense, was prominently positioned at the center, with Germany’s Leopard tank to its left and the United States’ Abrams tank to its right, symbolizing this significance. To the left of these three tanks was the K9 self-propelled howitzer.

A total of 30 domestic defense companies participated in this exhibition. Major defense companies such as Hyundai Rotem, Hanwha Aerospace, Hanwha Systems, KAI, LIG Nex1, Kia, and Poongsan set up individual booths, while small and medium-sized enterprises like Boseong Industry, Yeonhap Precision, and Palwol Samil occupied the SME pavilion.

KAI exhibited models of the FA-50GF light combat aircraft and KF-21 multipurpose fighter jet to be deployed in the Polish military. KAI also signed an MOU for follow-up support projects with PGZ, showing its determination to strengthen its position in the Polish market.

Hanwha Aerospace attracted visitors’ attention by showcasing various weapon systems. The 'Cheonmu' multiple rocket launcher was displayed alongside the U.S. HIMARS at the front of the exhibition hall. Hanwha Group’s Hanwha Ocean actively promoted the Jangbogo-III submarine. Poland has recently resumed the submarine project, known as the Orca project, which had been suspended, and is actively engaging in related businesses. Kim Dong-kwan, Vice Chairman of Hanwha Group, explained the submarine and satellite systems to Polish President Andrzej Duda during his visit to the booth. Hanwha Aerospace also displayed an unmanned reconnaissance vehicle equipped with the Cheonggeom missile at its booth.

LIG Nex1 exhibited air-launched guided weapons such as the KGGB, long-range air-to-ground guided missiles, ground-guided weapons including Hyungung and Shingung, and drone-related products, actively promoting their technology to Poland and neighboring countries. Hyundai Rotem displayed the K2 tank, which is already in operation with the Polish military, and Kia showcased the KLTV, a Korean-style small tactical vehicle known as the Korean Humvee.

Sebastian Chwałek, Chairman of PGZ, said, "The Republic of Korea has a special role as the Lead Nation participating in this exhibition," adding, "Cooperation between the two countries is productive and flourishing, and we are very satisfied with this."

Choi Byung-ro, Executive Vice President of the Defense Industry Association, said, "As K-Defense is growing dramatically, the government needs to further expand the budget for national subsidies supporting participation in exhibitions to help competitive domestic defense companies expand their overseas market opportunities and contribute to defense cooperation and the creation of defense demand."